Trump escalates trade conflict: 50 percent tariffs on steel and aluminum!

Trump escalates trade conflict: 50 percent tariffs on steel and aluminum!

US President Donald Trump recently increased tariffs on steel and aluminum to an unprecedented 50 percent. This decision came into effect on Wednesday, June 4, 2025, exacerbating the already existing trade conflict with numerous countries, particularly the European Union.

The new tariffs affect all imports of steel and aluminum and are in addition to the previously introduced tariffs of 25 percent, which came into force on the night of March 12, 2025. In the current situation, the EU is indicating that it could respond with countermeasures if these tariffs remain in place. How tagesschau.de According to reports, tariffs on European products are suspended until July 9, 2025, but the threat of a large-scale trade conflict remains present.

Trade conflict and national security

Trump justifies the tariffs by arguing that excessive imports would endanger US national security. According to him, countries like China are responsible for flooding the market with cheap metal. About a quarter of the steel used in the United States is imported, while over 40 percent of the aluminum comes from abroad. The USA sources its steel primarily from Canada, Brazil and Mexico; Germany and China are also among the main suppliers.

The economic pressure from Trump's policies could have far-reaching consequences for the European steel and aluminum industries. The EU represents an important sales market for the USA, with around 10 percent of steel and 15 percent of aluminum imports coming from the EU. The EU has already responded with retaliatory tariffs on US products in the past, and the risk of further tensions triggered by the current tariff increases remains clearly noticeable.

Further measures and international reactions

Trump also announced that he would increase tariffs on steel and aluminum imports from Canada to a total of 50 percent in response to a price increase for electricity exports from Canada. However, Ontario suspended these electricity increases after negotiations with U.S. Commerce Secretary Howard Lutnick, meaning Canada's original 25 percent tariffs remain in effect.

In addition, additional tariffs, characterized as reciprocal tariffs, are scheduled to come into force on April 2, 2025. With these measures, Trump aims to correct the existing trade imbalance and in particular accuses the EU of unfair trade. derstandard.de reported that the EU is now required to react accordingly to the developments.

The developments show that the trade conflict between the US and the EU has reached a new level of escalation, which could have both economic and political consequences.